Maxim Group analyst Tom Forte reiterated a Buy rating on ReposiTrak (TRAK – Research Report) yesterday and set a price target of $24.00.
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Tom Forte has given his Buy rating due to a combination of factors including ReposiTrak’s strategic positioning to capitalize on the food industry’s increasing need for enhanced traceability solutions. With upcoming FDA regulations mandating compliance by 2026, ReposiTrak stands to benefit significantly from its ability to offer cost-efficient, cloud-based services that ensure compliance, particularly for suppliers lacking robust IT infrastructure.
Furthermore, despite the recent quarterly results falling short of expectations, there is high visibility for revenue acceleration in the latter half of fiscal year 2025. Management’s insights into deferred revenue growth and onboarding new customers bolster confidence in future revenue increases. Additionally, the company’s solid cash flow and active financial management through stock repurchases and preferred stock redemption further support the positive outlook, contributing to the Buy rating.